By John Ikani
The US Justice Department has filed a federal antitrust suit against tech giant Google, accusing the company of unlawfully maintaining a monopoly in the online advertising market.
The suit, which was launched in conjunction with 11 states including Florida, Georgia, Indiana, Louisiana and Texas, claims that Google has “corrupted legitimate competition in the ad tech industry” and has used “anticompetitive, exclusionary, and unlawful means” to eliminate or severely diminish any threat to its dominance over digital advertising technologies.
Prosecutors say that Google “now controls” the sector, leading to website creators earning less and advertisers paying more, all while innovation is choked by the lack of rivals in the sector.
“In pursuit of outsized profits, Google has caused great harm to online publishers and advertisers and American consumers,” said Deputy US Attorney General Lisa Monaco in a statement.
Google has denied that it is a monopoly, claiming that rivals in the online ad market include; Amazon, Facebook-owner Meta and Microsoft.
However, the Justice Department’s suit argues that Google’s dominance has led to a lack of competition, stifling innovation and raising advertising fees.
The case is the latest in a series of legal battles against big tech companies, with the United States depending on the courts to curb the power of global tech giants like Google, Apple, Amazon, and Meta.
Earlier this month, US President Joe Biden urged Republican and Democratic lawmakers to pass laws that would set stricter rules for Big Tech.
As the case unfolds, it will be interesting to see how it impacts the advertising industry and the future of competition in the digital space.
